ECONOMIC OF COMPETITION
INDIVIDUAL ASSIGNMENT

INDONESIAN CONSTRUCTION BUSINESS GOES OVERSEAS
A Journey to become International Construction Player

By :

MAHENDRA VIJAYA 1240002095
MM Executive Batch 16

BINUS BUSSINES SCHOOL

CHAPTER I BACKGROUND :

As Indonesian Largest Construction Copany, PT Wijaya Karya (Persero) Tbk. (WIKA) has Vision and Mission to be One of the Leading EPC (Engineering, Procurement and Construction) and Investment Company in Southeast Asia, which is in one of the mission is to develop the potential of the State so that can use to maintain strategic efforts for GOES OVERSEAS. WIKA's strategy of expansion into the appropriate State and as a part of WIKA's portfolio. The high level of competition in the construction business and the changing business environment is increasingly dynamic and fast is forcing WIKA Construction perform various WIKA Group business portfolio in order to continue growing and getting bigger. Keep in mind that the competition in the field of construction in Indonesia intensifies hundreds of thousands of construction companies (source Balance 26/11/2010) fighting for a share of the budget infrastructure development has not been able to keep pace with infrastructure needs in Indonesia as well as the number of existing construction company, made the intense level of competition and unhealthy. In order to keep revenue and earnings growth the company can continue to increase, the development of the State is to be done so that the demands of Share Holder and Stake Holders WIKA especially in wanting a rapid growth of the company, a large and sustainable can be met. Potential infrastructure projects overseas, particularly developing countries producing oil and gas is very large, this is because the condition of the infrastructure is still minimal. In order for these countries to immediately forward the